In the domestic debt reduction process adopted by the Parliament, the pension funds will be greatly cut and it is revealed that the most prominent impact will be on the Employee Provident Fund and by 2038, 12 trillion rupees or 12 lakh rupees will be cut from it. Sri Lanka Latest News
This information was disclosed by Dr. Nishan Di Mel, director of Verity Research Institute, who joined the Sirasa profile program this morning (04). As of May 31, 2018, the Government has received an average interest rate of 13.5% for the loans given by treasury bonds from pension funds including the Employees’ Provident Fund. The government has adopted the proposal to cut it to 9.1%. Thus, Dr. Nishan Di Mel reveals that if 13.5% interest was given to the current government loans, the value of the fund would increase to 25 trillion rupees by 2038. Currently, the value of that fund is 3.456 trillion.
But by cutting the interest to 9.1%, Dr. Nishan Di Mel pointed out that this fund will suffer a cut of 12 trillion due to the loss of interest rates that are to be accumulated in the fund for 16 years until 2038.
